Tim Cook speaks! Apple's COO on Android, Japan, iPad 2

21.04.2011

The iPad today is subsidized in a few markets. It's subsidized in Korea if people sign a 24-month contract, it's subsidized in Japan with a 24-month contract, and a couple of European countries. But the vast majority of people that are using the iPad on 3G are doing so on a pay-as-you-go plan, a no-commitment plan. And so yes, carriers can do that, but I think many customers prefer the pay-as-you-go plan.

K-12 is sort of even more conservative than enterprise on adopting new technology. And last quarter, we were about a 1:1 ratio of iPads to Macs, which is, I think, amazing given the short life of the iPad. And really demonstrates what kind of opportunity there probably is there.

In terms of iPhone, we did actually very well everywhere. I'd call out two places where it was just off the charts. The U.S. grew 155 percent year over year. Obviously adding Verizon and beginning to offer iPhone to their enormous customer base was key in that. However, as you heard from AT&T's announcement this morning, AT&T did extremely well during the quarter. So the U.S. as a geography grew at 155 percent, and that's about three times IDC's forecast of growth for the smartphone market, which was about 48 percent. Also, we continued to be on a tear in China. Greater China saw iPhone sales being up over three times. Almost 250 percent. This catapulted revenue for first fiscal half in Greater China to just under $5 billion, which is up almost four times year over year. So we're extremely happy with how we're doing in China.